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Understanding deficits - when spending outpaces revenue for a company or government

1 month ago   |   By Business Insider

During a downward economic period, a government deficit could inject spending into the economy to turn things around. John Baggaley/Getty A deficit is the shortfall between two measurements, such as earnings and spending. When the government spends more than it takes in as revenue, that creates a deficit. Not all deficits are bad, even though they can accumulate to create debt. If you're spending more than you're bringing in each month, it means you have a deficit in your budget. When this happens, it likely means its time to re-evaluate and possibly rein in spending before you deplete...
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